Denzel Rodriguez shares three ways to cut household costs 10-20% annually: run fixed expenses on rewards cards earning 2-3% cash back, fund your own escrow to let tax and insurance money earn interest, and adjust your W-4 to keep more of each paycheck. Automate it all and let small monthly gains compound.
They call this on social media with other content creators. This is called credit card hacking. And it often gets positioned as travel hacking, which then encourages you to spend more money. So I don't know how efficient that is. I mean that's cool for people who are say debt free, they're making money, they're cash flow positive fun. That's cool. This is cash flow hacking. This is lifestyle hacking. I'm hacking your lifestyle. I'm reducing your lifestyle cost of operating on average by 10 to 20%. So if you spend 10,000amonth, 5,000amonth on lifestyle expenditures, if I, if you were to hire me and I do a thorough in depth analysis of this, I could probably save you 10 to 20% in a year. And this gets flipped like this, goes on repeat every single year. Because you're not limited to the amount of credit cards that you can have. You're not limited to your, to your credit score. This is, you're only limited to your own imagination and thinking and capacity to handle this leverage. But there's a lot of safety and guardrail parameters that I'm putting here because I'm saying, look, only fixed expenses that you would do this with, you don't do this with fluctuating expenses. The, the add on that puts a bow on this whole thing is I could say the rest of your qualified credit card expenses, you could earn more cash back Rewards, say say 2 to 3% or more. And the simple example, let's just say you are able to run about $3,000 in addition to this, about $3,000 a month of normal monthly expenses that maybe fluctuate. That's your gas, that's your food, that's your miscellaneous, that's your house products, that's entertainment, eating out, all that stuff to live, things for the kids, things for wife, things for husband, right? Let's say you could earn 3%. So now you're getting $90 a month. Imagine if you held on to the $90, where could that go? Well, that $90 could get applied to over here or you park it in the high yield savings. So you take your cash, move it over into the high yield savings. So now you got $90 times 11 months is $990 times 3%. That's another $30 in a year. I know it doesn't sound like a whole lot of money, but you could probably earn another 20 plus because you created $90. You were going to spend this 3,000 no matter what. But each month you got $90 back in cash back rewards and then you parked it in a high yield savings and got 3%, 4%, 3 and a half percent, whatever, whatever the rates are at that time. Is this clicking this good, let me know. So that puts a bow on this whole move. Now I'm going to end with this last strategy and then we're going to have to like, totally have another session, which I'll host next week, same time, and have some fun. I'm going to, I'm going to feed off of this as well. So so far I covered a lot, but again, I had a big agenda and it's just hard. Cover everything in a short period of time because I want to make sure you get the full context. You know, I don't, I don't like to leave you thinking, wondering, like I rather have you ponder and strategize and say, okay, I've got everything. I just need to, you know, take the time to put it together. It's not like I'm missing anything. I'm giving you the full pieces, all the pieces to the puzzle. Now you just gotta do. Right. Put it all together. Four, our homeowners. And then Carlita said cover or recap the paycheck. Claiming. Yeah, next visit. Absolutely. Will do. And in essence, the goal is most of you are claiming 0 on your W, your W, 4, whatever the document is. I forgot. I haven't been an employee for seven plus years, so give me some grace. There's a document that you fill out when you first get hired. Most of us never even like, pay attention to it and just like put zero. They don't know you're going to have to increase that number. The idea is you want to keep more of your paycheck. You don't want to withhold. You want to keep more of your paycheck throughout the month. That's cash flow. And instead of getting a refund, let's just say all you did was just park that money in high yield savings. You're adding to the, to the fire, right? You're adding more fuel to the fire. In that, in that example, my homeowners. Homeowners remove escrow. What a game changer this is. Are you tired of your mortgage payment increasing every year? Are you, are you tired of your escrow being short at the end of the year? And then they hit you with that bill and they're like, either pay this or your mortgage payment will increase by this much. Are you tired of that? Is that annoying? I've been a, I've been a homeowner for a year and I'M like, I'm not having it. I doing it. So I don't have an escrow account. I pay property tax and homeowners insurance annually out of pocket. So I get the bill, they let me know how much it is. They tell me the due date, I pay it on the due date in, in full. And there's a world where we could potentially use a credit card or other tools at our, at our disposal. But let's just say you created your own escrow account on top of the thing I said earlier to do with the credit card strategy and the hacking. And let's say you parked that money into the same High Yield Savings account and you're going to hold those dollars. You do the same thing. You're going to create automation out of your paycheck so you don't forget and you're going to preserve those dollars in your own escrow account and you're going to earn interest because when you pay an escrow account, you're not earning any interest. That money's sitting there in the clouds, ain't doing nothing. Your money is sitting dead. I help moms women build wealthy kingdoms that will last forever to have authority over their finances by helping them pay off debt, increase cash flow, lower your expenses, build your credit, all using your own income.
